Fervo Energy (NASDAQ:FRVO) Stock Falls 7.1% - Should You Sell?

Key Points

• Fervo Energy shares fell 7.1% to $13.43, with trading volume down 79% versus the average session. The stock is also below its 50-day moving average of $18.04.
• Analysts remain broadly bullish, with an average rating of “Moderate Buy” and an average price target of $40.87, substantially above the current share price.
• The company reported a quarterly loss of $0.38 per share, missing the $0.09 consensus estimate, and generated only $0.11 million in revenue. Analysts expect a full-year loss of approximately $0.54 per share.

Fervo Energy Company (NASDAQ:FRVO - Get Free Report)'s stock price dropped 7.1% during trading on Monday. The company traded as low as $13.42 and last traded at $13.43. Approximately 982,149 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 4,658,448 shares. The stock had previously closed at $14.45.

Analysts Set New Price Targets

FRVO has been the topic of a number of research reports. Johnson Rice started coverage on Fervo Energy in a report on Wednesday, September 23rd. They set a "buy" rating and a $35.00 price target on the stock. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $47.00 price objective on shares of Fervo Energy in a research report on Friday. Morgan Stanley upgraded Fervo Energy to an "overweight" rating in a research note on Tuesday, September 1st. Guggenheim raised Fervo Energy to a "strong-buy" rating and set a $48.00 target price on the stock in a report on Monday, June 8th. Finally, Wolfe Research set a $29.00 target price on Fervo Energy and gave the company an "outperform" rating in a report on Friday, September 25th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Fervo Energy presently has an average rating of "Moderate Buy" and an average price target of $40.87.

Fervo Energy Stock Down 7.6%

The company's fifty day moving average price is $18.04. The company has a current ratio of 8.62, a quick ratio of 8.62 and a debt-to-equity ratio of 0.08.

Fervo Energy (NASDAQ:FRVO - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The company reported ($0.38) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.29). The company had revenue of $0.11 million for the quarter. As a group, analysts forecast that Fervo Energy Company will post -0.54 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Fervo Energy

Several institutional investors have recently modified their holdings of the company. Corient Private Wealth LP acquired a new stake in shares of Fervo Energy in the 2nd quarter worth approximately $229,000. Engineers Gate Manager LP acquired a new position in Fervo Energy during the second quarter worth $272,000. AXQ Capital LP purchased a new stake in Fervo Energy during the second quarter worth $499,000. NewEdge Advisors LLC purchased a new stake in Fervo Energy during the second quarter worth $1,245,000. Finally, Ranger Investment Management L.P. purchased a new stake in Fervo Energy during the second quarter worth $1,455,000.

About Fervo Energy

Fervo Energy is a geothermal energy company focused on developing enhanced geothermal systems (EGS), which use horizontal drilling and hydraulic stimulation techniques to access heat in underground rock and produce electricity. Its approach is designed to expand geothermal generation beyond locations with naturally occurring conventional geothermal resources.

The company develops geothermal projects, including Project Red in northern Nevada and the larger Cape Station project in southwestern Utah.

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